9/27 Recap

We continue our descent to the 200 day just below 420 and have now hit max oversold levels. The VIX topped 19 for the first time since May, we finally have fear back in markets, even if slightly. Oil continues to rise up almost 4% today to nearly $94. It’s starting to feel like inflation is going to come roaring back and that big move lower we had in oil was artificial as Biden released the SPR. With that over oil is coming back with a vengeance and the Saudis are really putting their foot on the gas with cuts. The double whammy of oil being up 40% in 2 months and higher rates is really pressuring everything the market right now. Speaking of rates the TNX is at 45.85 now which would be its highest close of the year.

Trends

Interestingly even into this selloff on Amazon, like it was a few months back before the big move up, it continues to be the most bullish name, of course those calls and put sales are months out and not really looking for anything near term. I will have more on my thoughts below. I always tell you to focus on the small, odd names in these recaps, this MLKN for instance I reference twice in the past 3 months and it is up 30% right now. These are the sorts of names where the explosive moves happen, the large caps aren’t really anywhere you’re going to catch anything like that. Look at something like that SRPT I noted a few times recently, it dipped to 114 Monday and has quickly snapped back +6% in 2 sessions

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Today’s Unusual Options Activity